Home / Business and Economy / Coforge Surges on Stellar Q2, Analysts Raise Price Target by 6%
Coforge Surges on Stellar Q2, Analysts Raise Price Target by 6%
27 Oct
Summary
- Revenue grew 4.5% sequentially, beating expectations
- EBIT margins surged 240 basis points to 14%
- Signed 5 large deals worth $514 million in total contract value
On October 25, 2025, Coforge reported a strong Q2FY26 performance, leading Emkay Global Financial Services to raise its share price target by 6% to ₹1,850 while maintaining an 'ADD' recommendation. The stock closed at ₹1,760, implying a potential upside of 5%.
Coforge's revenue grew 4.5% sequentially to $462.1 million (5.9% in constant currency), surpassing expectations. EBIT margins also surged by 240 basis points to 14%, while reported net profit jumped 18.4% quarter-on-quarter to ₹3.8 billion, aided by higher other income.
The company's growth was broad-based across verticals, with Travel, Transport & Hospitality, BFSI, and Healthcare & Hi-Tech all seeing strong performance. Coforge also signed five large deals worth $514 million in total contract value, lifting its next-12-month executable order book to $1.63 billion, a 27% year-on-year increase.
Looking ahead, the management remains optimistic about H2FY26 outperforming H1, citing healthy deal momentum and a strong order pipeline. The company targets maintaining EBIT margins at or above 14% and expects free cash flow to PAT conversion of 75-80%.
